According to a Charles Schwab survey, Americans estimate A net worth of $2.2 million is required to be considered wealthy, however, there is a significant difference between the perceived wealth requirement and the actual net worth of those who feel rich.
The survey asked 1,000 Americans about their definition of wealth and how rich they feel today. 48 percent of the respondents reported that they feel rich, at the same time, the average net worth in this group is significantly lower, an average of about $560,000. This figure varies by generation, with millennials the most likely to report feeling wealthy today.
Charles Schwab’s findings also shed light on how Americans define wealth beyond financial metrics. When asked to describe what it means to them to be rich, respondents more often mentioned aspects related to wealth, rather than monetary or asset-based definitions. For example, many preferred it over large amounts of money
- full privacy,
- the enjoyment of experiences and
- maintaining a healthy work-life balance.
The survey revealed the importance of time over money and found that for 61% of participants, time is more important than more money. This preference was strongest among baby boomers. 67% of Boomers valued time over money, compared to 59% of Gen Xers, 56% of Millennials and 58% of Gen Zers.
The survey also reveals that only 35% of Americans have officially documented their financial goals. In contrast, the majority of Americans do not have a formal financial plan – 65% of respondents do not have one at all. Of those who have already considered financial planning, 40% admitted that they need to document their goals, indicating that they recognize its importance but delay taking action. Another 26% did not think about financial planning at all.
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